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TMI Blog2018 (7) TMI 1566X X X X Extracts X X X X X X X X Extracts X X X X ..... - I.T.A. No.1875/Ahd/2015 - - - Dated:- 11-7-2018 - SHRI WASEEM AHMED, ACCOUNTANT MEMBER Ms. MADHUMITA ROY, JUDICIAL MEMBER Appellant by : Shri Tej Shah, AR Respondent by : Shri V.K. Singh, Sr.DR O R D E R PER Ms. MADHUMITA ROY - JM: The instant appeal has been filed before us by the assessee against the order dated 23.04.2015 passed by the Commissioner of Income Tax(Appeals)-4, Ahmedabad [Ld.CIT(A) in short] for Assessment Year (AY) 2011-12 arising out of the order dated 30.01.2014 passed by the ACIT, B.K. Circle, Palanpur with the following grounds:- 1. The learned CIT(A) erred in law and on the facts of the case in confirming the order u/s.143(3) the Act of the A.O. who has computed the income at ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to why deduction claimed u/s.80P(2)(a)(i) 80P(2)(d) of the Act should not be withdrawn as per the amendment inserted w.e.f. 01.04.2007. The assessee replied that the assessee is a Co-operative Society and the Banas Co-operative Bank (in short Banas) is also a Co-operative Society engaged in banking business, therefore interest income and dividend income received from it is totally exempt from tax. The said Banas is registered with the Gujarat Co-operative Society Act, 1961 copy whereof was also submitted before the Ld. AO along with the submission made by the assessee. The assessee further submitted before the AO that the payer i.e. Banas Co-operative Bank and the payee being the assessee, both are Co-operative Societies, hence, the deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank. The Ld.AR contended that the AO has come to an erroneous finding to this effect that the Banaskantha Dist.Central Co-operative Bank Ltd. from whom the assessee has earned interest and dividend income from its deposits is not a Co-operative Society but a bank and thus the assessee is not entitled to deduction as claimed for which was further confirmed by the Ld. CIT(A) without application of mind. In support of his argument, that the Banaskantha Dist.Central Co-operative Bank Ltd. is a Co-operative Society, the Ld. AR has submitted the Certificate of Registration dated 20.08.1959 before us which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otes to the above Finance Act dated 28.122006 in holding that the impugned interest income derived from co-operative bank is not eligible for deduction. Learned Departmental Representative vehemently contends that hon ble Karnataka high court s recent decision in (2017) 83 taxmann.com 140 (Karnataka) PCIT vs. Totagars Co-operative Sale Society has settled the law that such an income is not allowable as Section 80P deduction in view of the legislative amendment hereinabove. Mr. Kabra thereafter files hon ble apex court s judgment in (2017) 397 ITR 1 (SC). The Citizen Co-operative Society Ltd. vs. ACIT settling Section 80P deduction issue in respect of ordinary and nominal members. We however find that the above former decision goes contrary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposed question B is also answered against the revenue. We therefore follow hon ble jurisdictional high court s judgment than hon ble Karnataka high court s decision. Coming to hon ble apex court s decision in the Citizen Co-operative Society Ltd. (supra), we find that there is no dispute about the category of members as it was before their lordships. We thus conclude in view of all these facts and circumstances that hon ble jurisdictional high court s judgment is binding on us. We accordingly delete the impugned disallowance of ₹ 27,97,019/- in question. This lead appeal ITA No. 1891/Ahd/2014 is partly accepted 8. Thus it is a fact in the aforesaid matter that the Co-ordinate Bench has been pleased to allow the claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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